diff --git a/NEWS b/NEWS
index 922452e4bf6..a1e5a2cb247 100644
--- a/NEWS
+++ b/NEWS
@@ -8,6 +8,8 @@ PHP                                                                        NEWS
 - GD:
   . Fixed bug GH-17349 (Tiled truecolor filling looses single color
     transparency). (cmb)
+  . Fixed bug GH-17373 (imagefttext() ignores clipping rect for palette
+    images). (cmb)
 
 - Intl:
   . Fixed bug GH-11874 (intl causing segfault in docker images). (nielsdos)
diff --git a/ext/gd/libgd/gdft.c b/ext/gd/libgd/gdft.c
index 6876ca6f6b4..953da001bbe 100644
--- a/ext/gd/libgd/gdft.c
+++ b/ext/gd/libgd/gdft.c
@@ -720,7 +720,7 @@ static char * gdft_draw_bitmap (gdCache_head_t *tc_cache, gdImage * im, int fg,
 		y = pen_y + row;
 
 		/* clip if out of bounds */
-		if (y >= im->sy || y < 0) {
+		if (y > im->cy2 || y < im->cy1) {
 			continue;
 		}
 
@@ -743,7 +743,7 @@ static char * gdft_draw_bitmap (gdCache_head_t *tc_cache, gdImage * im, int fg,
 				x = pen_x + col;
 
 				/* clip if out of bounds */
-				if (x >= im->sx || x < 0) {
+				if (x > im->cx2 || x < im->cx1) {
 					continue;
 				}
 				/* get pixel location in gd buffer */
diff --git a/ext/gd/tests/gh17373.phpt b/ext/gd/tests/gh17373.phpt
new file mode 100644
index 00000000000..354cdd07362
--- /dev/null
+++ b/ext/gd/tests/gh17373.phpt
@@ -0,0 +1,26 @@
+--TEST--
+Bug GH-17373 (imagefttext() ignores clipping rect for palette images)
+--EXTENSIONS--
+gd
+--FILE--
+<?php
+$im = imagecreate(64, 32);
+$bg = imagecolorallocate($im, 0, 0, 0);
+$fg = imagecolorallocate($im, 255, 255, 255);
+imagefilledrectangle($im, 0, 0, 63, 31, $bg);
+imagesetclip($im, 32, 0, 63, 31);
+imagefttext($im, 16, 0, 10, 23, $fg, __DIR__ . "/Tuffy.ttf", "hello");
+
+imagesetclip($im, 0, 0, 63, 31);
+$count = 0;
+for ($j = 0; $j < 31; $j++) {
+    for ($i = 0; $i < 31; $i++) {
+        if (imagecolorat($im, $i, $j) !== $bg) {
+            $count++;
+        }
+    }
+}
+var_dump($count);
+?>
+--EXPECT--
+int(0)